History repeatedly serves to show us that
real estate market is cyclical. It has boom times and stagnant times, occasionally it suffers a crash but real estate never becomes worthless, therefore if
experts are right and we’re about to suffer a slow to stagnant period in
real estate market, all is not lost!There are 5 fundamental secrets that real estate investors like to keep close to their chest and they are
secrets that enable them to survive and even profit during a bear market.
This article blows
lid off
secret world of
professional real estate investor!
1)Aligning For Profit in a Bear Market
When professional property investors believe
market is entering a downward phase i.e., changing from Bull to Bear - they will change their investment strategies accordingly. One method that tough investors apply is to buy up property in
best areas that they can afford once a market is slumping already. Professional real estate investors know that
best areas for property always boom again very early on in
next property cycle.
By working in this way they can then leverage their investment by selling their property early on in
boom cycle and buying elsewhere and always remaining one step ahead of less professional investors or average home owners.
Up and coming areas will eventually peak as well of course as they are swept along on
tide of
boom, but they will not peak first and investors in these areas will have to wait longer to see their profits.
Professional investors will likely enter these areas just before they peak and sell up just before
heat goes out of
market enabling them to again buy up what they can afford in
best areas thus positioning themselves ready for
next upward trend. And so it continues!
2)Slow Down Your Speculating
You may already have decided that
time is no longer right to be over extending yourself and you may have cut back on your property purchases, but remember that making any home improvement or taking on any renovation projects during a downward period of
property market is also considered to be speculating. Don’t just assume that capital appreciation from your property will justify home related expenditure right now…in a bear market it won’t.
3)Never Forget The Supply and Demand Theory